2009: QE is the right solution to the GFC, stocks will rally

Consensus said:

Investor pessimism at historic lows. Many forecast a 1930’s-style depression.

We said:

Monetary authorities around the world are starting to understand the necessity of quantitative easing. With a market improvement in sentiment…a strong rally in global equities is possible. (GLI: Americas 12th January 2009)

Outcome:

QE puts a floor under market fears , boosting equity and bond prices. US stocks lead a multi-year global rally from Q1.